Welcome to Sector Insights... giving senior executives and their teams the latest tax, business and software news affecting your company's financial performance... and ultimately, your success. 

NUANCES OF THE NEW REVENUE STANDARD FOR LIFE SCIENCE COMPANIES
The new revenue recognition standard, "Revenue from Contracts with Customers" (ASC 606), went into effect for non-public companies with calendar year-end reporting requirements on January 1, 2019.

Publicly-held companies with calendar year-ends have had to comply with this standard since the beginning of 2018.

In sum, the new standard evaluates the timing of revenue recognition from a different viewpoint than from the former standards. Previously, the timing of revenue recognition was more rules-based, whereas the new standard uses a more principles-based approach. 

SO YOUR INVESTOR HAS PROMISED YOU MORE MONEY IN THE FUTURE! GREAT, BUT...
Palms with a tree growing from pile of coins   hands holding a tree growing on coins   csr green business   business ethics   good governance
Congratulations! You've received some funding from investors and, as an added bonus, they've promised, in writing nonetheless, that you will receive more of their money if you achieve certain operational goals.
 
Ok, that part is not so easy, but you have faith in your colleagues at work. All you must do is keep good track of the money and have good financial and operational controls.
 
Unfortunately, you have some accounting homework to do too. Those forthcoming tranches are known as forward contracts and they may contain the dreaded "D" word - DERIVATIVES! This homework assignment can be completed if you attack it in an orderly manner. 

BIOTECH VENTURE DEAL TERMS ARE MORE START-UP FRIENDLY THAN EVER
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Biotech is booming, with eye-popping new financings seemingly announced daily. The sector is having an epic year for startup fundraising, breaking records for what will end up as the most active private biotech financing year ever.
 
Although overall sentiment in the VC-backed biotech ecosystem is hard to explicitly measure (i.e. there's no "index" traded daily), it's clearly a very bullish period in the investment cycle. Some of this excitement is clearly warranted - lots of great new therapeutics are addressing the needs of patients, as science is maturing into medicine at an incredible pace.  

CFO SURVEY: RECESSION LIKELY BY END OF 2019
Businessman with briefcase moving down the bars along with arrow sign depicting economic recession
Nearly half of U.S. CFOs believe that the nation's economy will be in recession by the end of 2019, and 82 percent believe that a recession will have begun by the end of 2020. 

"The end is near for the near-decade-long burst of global economic growth," said John Graham, a finance professor at Duke's Fuqua School of Business and director of the survey.
 
The CFO survey has been conducted for 91 consecutive quarters and spans the globe, making it the world's longest-running and most comprehensive research on senior finance executives.  

BITS & BYTES...
FINANCIAL SERVICE concept with Data analyzing in Forex_ Commodities_ Equities_ Fixed Income and Emerging Markets. the charts and summary info show about  Business statistics and Analytics value .
Greg Erman , President and CEO of RBF client EmpiraMed, Inc. was named to the Leadership Council of the National Small Business Association. Greg joins other advocates from across the country as they work to promote the interests of entrepreneurs to policymakers in Washington, D.C.

And congratulations to RBF client CAMP4 Therapeutics for securing its research collaboration deal with Alnylam Pharmaceuticals, Inc. The collaboration brings together CAMP4's expertise in rapidly pinpointing signaling targets that control the expression of genes with Alnylam's expertise in RNAi therapeutics development to advance novel rare disease drug candidates. 

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